Illinois 529 Plan: What College Savers Should Know
Editor & Writer
Editor & Writer
Editor & Writer
Editor & Writer

According to the Federal Reserve, In June 2022, Illinois held about:[1]
- $15.4 billion in 529 college savings accounts
- $653 million in 529 prepaid tuition accounts
- $16 billion across all 529 accounts
529 plans are designed to help people save for college expenses. They can save for themselves or for a beneficiary, like a child or a grandchild.
State residents can take advantage of tax benefits for using an Illinois 529 plan. Here's what savers should know.
Illinois 529 Plans
Illinois currently offers two 529 plans. It used to also offer a prepaid tuition plan called the College Illinois! 529 Prepaid Tuition Program. However, this plan is no longer accepting new enrollments.
Illinois' 529 plans include a self-guided plan —meaning that you select investments on your own — and an advisor-led plan — where a financial advisor can help you. The advisor-guided 529 plan in Illinois comes with higher upkeep fees.
Check out the plans below:
Bright Start College Savings Program
- Requires State Residency? No
- K-12 Expenses Eligible? No
- Fees: 0.07-0.82%
- Performance Notes: The Index Age-Based Moderate fund for ages 6-8 has earned 5.31% in average annual returns over its lifetime.
Bright Directions Advisor-Guided 529 College Savings Program
- Requires State Residency? No
- K-12 Expenses Eligible? No
- Fees: 0.14-1.56%
- Performance Notes: The Class-A Age-Based Moderate option for ages 6-8 has earned 5.76% in average annual returns over its lifetime.
Behind the Numbers
Just like any investment portfolio, Illinois' 529 plan performance changes over time with the market. We last updated our performance notes in January 2023.
In addition, there are multiple portfolios you can invest in with each Illinois 529 plan. Some are more conservative, and some are more aggressive. Check out the options yourself to see which portfolio is right for you.
529 Plan Illinois Pros and Cons
Pros
- Anyone can participate in an Illinois 529 plan — not just state residents.
- Illinois residents get tax advantages for participating. According to the College Savings Plan Network,2 single state residents can deduct their annual contributions to an Illinois 529 plan — up to $10,000. Married state residents who file jointly can deduct up to $20,000.
- In Illinois, you can contribute up to $500,000 in total to college savings plans.[2]
Cons
- Unlike some other state-sponsored 529 plans, you can't use savings in an Illinois 529 plan to pay for K-12 educational expenses. It's for college costs only.
Latest News

300-Plus Colleges Commit to Financial Aid Transparency for Students
University of California to Offer Online College-Level Courses to Low-Income High School Students
Community Colleges Need to Do More to Support Immigrant Students: Report
New Social Justice Center Gives HBCU Students a Vehicle to Activism
Related Stories
Featured Stories
Latest Analysis
Data Studies
View allMost College Students Would Feel Angry If SCOTUS Blocks Student Loan Forgiveness

Only 1 in 4 Students Support Legislative Efforts to Limit DEI on College Campuses

TikTok Ban Would Anger Most College Students: 6 Key Survey Findings

Half of College Students Say Using AI on Schoolwork Is Cheating or Plagiarism
